Can OCI invest in Indian Stock Market?

  • Asked By
  • Updated On:
  • Replies:

Short Answer

Yes, an Overseas Citizen of India (OCI) can invest in Indian stock market. Let's know ways how an OCI can start investing in Indian stocks from another country.

Detailed Answer

OCI India

OCI is an abbreviation for Overseas Citizens of India. A person is eligible to become an OCI of India

  1. If a person was born in India and is under the definition of the Government of India Act 1935.
  1. If he or she was born in India and is under the definition of the Government of India Act 1935.
  1. A person who was residing outside India and had the eligibility to be an Indian citizen on 26/01/1950.

A spouse of an OCI can become an OCI online if he/she passes the eligibility in his/her own capacity. An OCI gets a card issued by the Ministry of External Affairs. Let us explore if an OCI can also invest in Indian stock markets like a citizen or a Non-resident does.

Can OCI invest in the Indian stock market?

  • An OCI has access to the Indian stock markets. For them to invest in the markets, they need to follow the steps listed below:
  • Open a bank account of your choice. It can be a Non-resident external account (NRE) or a Non-resident ordinary account (NRO) or a Foreign Currency Non-resident account (FCNR).
  • Remit funds in any of the above-mentioned bank accounts.
  • Lodge Foreign Inward Remittance Certificate (FICR), to prove that the money deposited in clean and to pass the anti-money laundering rules is cleared.
  • Choose a service provider/ trading platform.
  • Open a demilitarized account.
  • Open a trading account and link it with the demat account and your bank account.
  • Clear Know Your Customer (KYC) rules set out by your preferred service provider. You might have to submit documents such as your foreign passport, proof of residence in foreign currency, address in your residing country etc.,
  • Once done, you can start owning, investing and trading the financial instruments listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

An OCI investing in the Indian stock market

As an overseas citizen of India, you cannot directly invest in shares, rather you have to go via a stock broker. You can also invest via a proxy. A proxy is a person – a friend or a blood related family member who acts on your behalf.

You need to give the power of attorney to this proxy and have this person authorized through a public notary. Once done, this person can invest in the Indian stock markets on your behalf.

Tagged With: ocioverseas citizen of indiaindian stock marketindian stocksoci investmentoci invest
Categories: Stock Market
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
Can foreign nationals invest in Indian Stock Market?

Yes, foreign nationals are allowed to invest in the Indian stock market. Individuals can invest under the category of Qualified Foreign Investors, and Institutional investors can do so under the category of Foreign Institutional Investor (FII).

Is Indian Stock Market Profitable?

Indian stock market is undoubtedly profitable, but your level of discipline and knowledge will determine how you manage and handle it. So, let's catch up a few in-depth insights on the robust stock market in India.

Can NRI invest in Indian stock market?

Yes, NRIs can invest in Indian stock market. It is essential for the individual to check if he is considered as NRI or not according to the norms of the government. If yes, only then he can invest. There are also certain rules and regulations that must be followed.

Can OCI invest in Indian Mutual Funds?

Yes, Overseas Citizens of India (OCI) can invest in Indian mutual funds. Checkout ways how an OCI can start investing in the Indian mutual fund industry.

What percentage of Indians invest in stock market?

There are about 89.7 million active demat accounts as of 31st March 2022, i.e., about 5-6 percent of Indians invest in stock market. Let's gather some more details on the percentage of Indians actually putting their money in the share market.

What is Karvy KRA, KYC, FATCA Status?

KRA is an abbreviated short form of KYC Registration Agency whose primary job is to collect and maintain KYC records of individuals on behalf of SEBI registered financial market participants mainly Mutual Funds companies, NBFC, Brokers etc.

Can I trade or invest Rs 100 in the share market of India?

You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.

What are the tax implications on investments done outside of India?

Every Equity Investor should maintain some part of their portfolio diversified into foreign companies. This can be achieved through Foreign brokers or Mutual Funds and ETFs that invest in abroad markets. Investing abroad has many benefits such as exposure to the top global companies like Facebook, Amazon, Ford, etc. The tax implications on investments made outside India are different as foreign Equity is taxed as Debt Mutual Funds

Can I invest 100 rupees in share market?

Yes, one can invest in the share market with 100 rupees. So, you can start investing with as little as Rs.100 only. Isn't that interesting? There is no reason as to why one can’t invest in the stock market for 100 rupees.

What is Sensex and Nifty in share market?

Nifty and Sensex and two stock market index given to the top performing, financially established and stable companies where most of the individuals prefer investing.